The CEO of Sprott US Holdings, Rick Rule, has made some bold predictions for the direction of gold in 2018. His comments were clear on what he expects to happen with gold and how brokers can expect the price of the liquid asset to perform.
Gold Stocks to Rise, Not Gold Prices
Mr Rule was very clear about the distinction between his views on gold price and gold stocks this year. While he expects gold prices to do well, he doesn’t see a massive breakout on the horizon. Instead, it appears that Mr Rule expects gold stocks to be the ones to watch.
In 2017, gold stocks were outperformed by gold prices. However, 2018 may see the reverse if industry figures like Mr Rule are correct. The expectations around gold stocks are so low that their expected success could surprise many.
Gold Mining Stocks May Be the Key
At the Vancouver Resource Investment Conference, Mr Rule noted that large gold producers and intermediates are the stocks that should rise in 2018. Additionally, he pointed out that smaller, third-tier stocks could also prove to be wise investments. These stocks are in companies that produce smaller amounts of gold but have a direct path to the single-asset companies that put the asset into production.
Research Is Still Key Before Making Any Trade
As with any kind of stock trade, it is vital to do your research before investing any money.
